‼️What is USD-M Future?‼️

USD-M Futures (or USD-Margined Futures) is a type of cryptocurrency futures contract that is margined and settled in a stablecoin, typically USDT (Tether) or other USD-pegged stablecoins like BUSD. These contracts are commonly used in crypto derivatives trading, offering a more stable form of margin and settlement compared to COIN-M futures, which use volatile assets like Bitcoin for margin.

🔑Key Features of USD-M Futures:

1. Stablecoin Margined: The margin and settlement of USD-M futures are done in a stablecoin, like USDT, which is pegged to the US dollar. This provides stability in terms of margin value, as stablecoins are less volatile compared to cryptocurrencies like Bitcoin.

2. Leverage: Traders can apply leverage, meaning they can take larger positions than their margin would normally allow. Leverage can increase both potential profits and losses.

3. Perpetual or Traditional Futures: Similar to COIN-M Futures, USD-M futures can be perpetual contracts, which have no expiry, or traditional futures, which expire at a specified time.

4. Risk: Because margin is held in stablecoins, the trader’s risk exposure is linked to the movement of the underlying asset (such as Bitcoin) without the added volatility of holding a margin in cryptocurrency. This reduces one layer of volatility.

In short, USD-M futures offer a more stable way for traders to speculate on the price movements of cryptocurrencies, without being exposed to the price swings of the crypto margin itself.